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OlgaM077 [116]
3 years ago
12

Which of the following debit and credit rules is​ correct? A. Decreases in assets and liabilities are credited. B. Increases in

liabilities and​ stockholders' equity are credited. C. Increases in liabilities and​ stockholders' equity are debited. D. Increases in assets and liabilities are debited.
Business
1 answer:
Andrei [34K]3 years ago
6 0

Answer:

B. Increases in liabilities and​ stockholders' equity are credited.

Explanation:

As Liabilities and Stockholder's equity have credit balance, so a credit entry will increase their value and debit entry will decrease its balance. On the other hand assets accounts have debit balance, a credit entry will decrease its balance and debit entry will increase it. So the correct option is B. Increases in liabilities and​ stockholders' equity are credited.

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Splish Corporation has retained earnings of $721,100 at January 1, 2020. Net income during 2020 was $1,562,700, and cash dividen
Vitek1552 [10]

Answer and Explanation:

The preparation of the retained earnings statement is presented below:

Opening retained earning balance $721,100

Add: prior period adjustment $86,370

Add: net income $1,562,700

Less: dividend paid $79,000

Ending retained earnings $2,291,170

The above items would be added and deducted that increase and decrease the retained earnings balance

4 0
3 years ago
Do you think Bitcoin should be regulated?
nignag [31]
Yeah hooray hooray hooray
5 0
3 years ago
On August 1, Ernie wrote to Elsie offering to sell Elsie his car for $7,600, and he promised to hold the offer open for ten days
Daniel [21]

Answer:

Yes, the contract is still valid.

Explanation:

Let us first clarify some terms first.

A contract is referred to as a legally binding agreement that is recognized, known and governs the rights and duties of the parties involved in an agreement. A contract is legally enforceable because it meets the features and approval of the law. An agreement basically involves the exchange of goods, transactions, services, money, or promises. In the case of breach of contract, the law awards the injured party access to legal remedies which include damages and cancellation.

Letter of revocation is an act by which a person having authority, calls back or in other words annuls a power, gift, or benefit, which had been bestowed upon another.

Yes, the contract still holds. This is due to the reason that the letter had a date mentioned on it which is August 4, a day before the contract was accepted even though the revocation letter arrived late.

Therefore, as regards to the date on the letter, the contract is still valid.

3 0
3 years ago
ABC Steel Co. is considering buying a new machine in order to increase its production capacity using new technology. Details abo
stepan [7]

Answer:

payback period is lesser than 15 years we can say that they should buy the machine

so correct option is c. 4.8 years  

Explanation:

given data

Purchase Cost = $300,000

Savings offered = $62,500 per year

Life of machine = 15 years

to find out

Payback period

solution

first we get here Payback period that is express as

Payback period =  purchase cost ÷ savings   ...........1

put here value we get

Payback period = \frac{300000}{62500}

Payback period = 4.8 years

and here payback period is lesser than 15 years we can say that they should buy the machine

so correct option is c. 4.8 years  

7 0
3 years ago
Phionia Phelps has developed a gourmet cat food. Not only is this food eagerly eaten by the most finicky felines, but it is spec
pickupchik [31]

Answer:

Explanation:

a.

Sales budget = $ 250 per case * 100 cases per batch * 6 batches per day * 20 days a month * 6 months

= $ 18,000,000

b. Production budget in units = 100 cases per batch * 6 batches per day * 20 days a month * 6 months

= 72,000 cases

Production budget including 10 percent inventories

= 72000 + 100*6*20*10%

= 73200 cases

c. Direct materials purchases budget in pounds including 5% inventories

Lamb = 5 pounds per case * (73200 cases + 100*6*20*5% cases )

= 369,000 pounds

Rice Lamb = 10 pounds per case * (73200 cases + 100*6*20*5% cases )

= 738,000 pounds

Salmon = 2 pounds per case * (73200 cases + 100*6*20*5% cases )

= 147,600 pounds

Vitamins = 1 pound per case * (73200 cases + 100*6*20*5% cases )

= 73,800 pounds

d. Direct materials purchases budget in dollars = 369000*15 + 738000*1.2 + 147600*24 + 73800*45

= $ 1,328,400

e. Manufacturing labor budget in dollars = 1 hours per batch * 6 batches per day * 20 days per month * 6 months * ($ 18 per hour for ingredient preparation + $ 24 per hour for cooking and canning ) * 2 workers

= $ 60,480

2. The business requires an investment of $ 1,328,400 + 60,480

= $ 1,388,880 over six months.

This translates to monthly investment of $ 231,480

Therefore $ 50,000 investment is too small to begin with.

8 0
3 years ago
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